In May 2018 the US withdrew from the Joint Comprehensive Plan of Action (JCPOA). This resulted in the re-imposition of all the US sanctions lifted or waived in connection with the JCPOA. These are to be re-established no later than 180 days from the date of the National Security Presidential Memorandum issued on 8 May 2018.
The Department of State and the Department of the Treasury will take the necessary steps to establish a 90-day and a 180-day wind-down period for activities involving Iran that were consistent with the U.S. sanctions relief provided for under the JCPOA. The Office of Foreign Assets Control (OFAC) expects that all the U.S. nuclear-related sanctions that had been lifted under the JCPOA will be re-imposed with effect from 5 November 2018. However, some sanctions will be re-imposed after a 90-day wind-down period ending on 6 August 2018.
British Marine and QBE Asia P&I are able to provide coverage, process premiums and pay claims, provided that it is legally permissible to do so and there is no apparent exposure for British Marine and QBE Asia P&I to the US “primary” sanctions and the newly re-imposed sanctions when providing cover or paying claims. We will be undertaking the full due diligence of Iranian parties on a case by case basis, in order to assess the risk/claim for potential exposure to sanctions. New and existing policies will be reviewed with caution. In addition to adequate due diligence we would expect there to be an adequate sanctions exclusions clause on risk and will work with assureds to enable this.
We reiterate that claims will be paid, subject to the terms and conditions of the policy, where it is legally permissible to do so. Any relevant licences will be requested from the relevant authority to enable us to make payment(s) legitimately, and this process can take time. Iran remains a high risk territory, and it is important from a regulatory perspective that the appropriate due diligence is undertaken.
Please speak to your usual underwriting contact if you require further information on prohibitions relevant to (re)insurance.
A complete embargo remains on the export to Iran of military goods and technology; missile technology; equipment for internal repression; and equipment for monitoring communications (and the provision of all related financial assistance). Prior authorisations from the Export Control Organisation, part of the Department for Business, Innovation and Skills ("BIS") remain a requirement for the export to or for use in Iran of:
The UK Government has stated that it continues to fully support expanding the UK’s trade relationship with Iran.
British Marine and QBE Asia P&I are not US persons (as defined in OFAC Reg. 31 C.F.R. 560.314). However we need to remain mindful of the potential risk associated with the following;
Sanctions re-imposed after 90-day wind-down period ending 6 August 2018
In addition, the following JCPOA-related authorisations will be revoked after the 90-day wind-down:
Sanctions re-imposed after the 180-day wind-down, effective from the 5 November 2018
On Friday 18 May the EU announced it is taking steps to preserve the interests of European companies investing in Iran in response to mitigating the impact of US sanctions on European businesses. The EU will be amending its Blocking Regulation to preserve the interests of European companies investing in Iran. The European Parliament and Council now have less than two months to raise any objections to the measures in the amended Blocking Regulation before it enters into force in August 2018.
We are continually monitoring the situation in relation to the changes in sanctions for Iran and any impact that this will have on British Marine and QBE Asia P&I, and we will notify our assureds of any relevant changes. We will continue to work with our assureds to provide positive insurance solutions in line with legal parameters. However please note that the area of sanctions is fast moving and is subject to change, and the stance of British Marine and QBE Asia P&I may need to adapt to such change depending on the circumstances.
If you have any questions relating to the above please refer to your usual contact at British Marine or QBE Asia P&I.